The transformation and passage of the health care reform bill could send health care funds in varying directions. The “public option,” or government insurance alternative, has been taken out, and the existing employer-based health-insurance system hasn’t been tampered with.
The new bill, however, is expected to hurt Big Pharma’s profits. Biotech drugs usually focus on a small group of patients, and the specialization will help minimize the leverage pharmaceuticals have over drug firms. Medical device manufacturers will likely take a hit after cuts to medicare and new taxes take their toll.
Once the bill finishes its rounds in the Senate, the bill will have to be reconciled with the bill adopted by the House, and there are significant disparities between the two. For instance, the House includes a public option that was dropped by the Senate.
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Max Chen contributed to this article.